You are here
Olam offers to repurchase US$500m of convertible bonds
COMMODITIES trader Olam International has offered to repurchase its 6 per cent convertible bonds due 2016, it said in a Singapore Exchange filing on Wednesday after market close.
It said that it had issued a total of US$500 million in convertible bonds in 2009 over two separate days, Oct 15 and Nov 5, and has on Wednesday invited holders of these bonds to tender them back to Olam for cash.
The move to buy back its convertible bonds is part of Olam's "commitment to the active management of its balance sheet, which includes the optimisation of tenor and cost of its borrowings", the company said in its statement.
Olam said the invitation to tender will close on Dec 18 at 8pm and that it expects to announce the total cash sum it will pay for the repurchase by the morning of Dec 22. It expects the settlement date for the repurchase to be Dec 23.
Olam shares rose a cent to S$1.78 before the announcement.